LONDON: Raw sugar futures on ICE hit a new 2-1/2-month peak on Friday, heading for gains of around 10% this week as improved macro-economic signals and tightness in white sugar supply continued to draw funds in on the buy side.
White sugar prices hit three month highs, with the front month trading more than $20 per tonne higher than the second month, an inverted market structure that signals tight supply, strong demand, or both.
July raw sugar rose 0.18 cents, or 1.5%, to 11.90 cents per lb by 1431 GMT, having hit a peak of 12.03 cents.
Dealers cited fund buying amid improved macro and technical signals, but said fundamentals likely don't justify prices much above 12 cents as Brazil remains on course to produce maximum sugar, while India's output is set to recover.
Broker INTL FCStone sees the global market moving into surplus in 2020/21 and has cut its estimate for the size of the deficit in 2019/20.
August white sugar ??rose $9.70, or 2.5%, to $394.50 a tonne. July arabica coffee rose 1.4 cents, or 1.4%, to 99.45 cents per lb. September robusta coffee rose $31, or 2.5%, to $1,241 a tonne.
September New York cocoa rose $14, or 0.6%, to $2,391 a tonne, amid weakness in the dollar.
July London cocoa fell 23 pounds, or 1.2%, to 1,872 pounds per tonne,? amid strength in sterling.-Reuters
New York cotton
NEW YORK: The following were the fluctuations observed during the day:
================================================================================ Current Session Prior Day Open High Low Last Time Set Chg Vol Set================================================================================Jul'20 59.89 62.32 59.75 61.80 12:44 - 1.80 21664 60.00 Jun 05Oct'20 60.14 60.33 60.14 60.33 10:28 - 0.79 4 59.54 Jun 05Dec'20 59.41 61.11 59.38 60.74 12:44 - 1.16 20964 59.58 Jun 05================================================================================